It’s Getting Easier to Purchase Your Favorite Coins…
“Binancian” users can now purchase BTC, ETH, XRP, and LTC directly with their credit and debit cards. As part of Binance’s “mission to increase the adoption and mainstream accessibility of crypto,” the number-one exchange by trading volume (at the time of writing) has partnered with Simplex, a payment processing provider.
Source: Binance official announcement https://support.binance.com/hc/en-us/articles/360022498052-Binance-Enables-Debit-and-Credit-Card-Payments
Using credit cards to purchase digital assets has become a difficult process in recent months, with companies and crypto exchanges disabling the option as authorities applied more pressure throughout 2018.
However, wire transfer and debit card transactions are more widely accepted and are becoming a more common method to deposit funds to exchanges. This was once Coinbase’s killer advantage over many other crypto exchanges, acting as an easy-to-use onramp in the digital asset sector.
In the future, more crypto exchanges will bridge the gap between fiat and digital assets. This was the critical infrastructure missing during the 2016/2017 bull market when many sold back into BTC and then had to find a platform that supports their local fiat currency.
Can Users Withdraw Fiat From Binance to Their Cards?
For the time being, Binance users can only deposit fiat and CAN ONLY withdraw using cryptocurrencies.
I took the time to ask support if users can withdraw back to their credit/debit cards. The very polite support assistant responded as shown below:
Source: Simplex Online Chat/Support Page https://www.simplex.com/support/
This could be down to the myriad of regulations each nation chooses to execute and would open up the discussion as to how users who cash out into their local government-issued currency will declare and pay taxes on any profits realized when using Binance, similar to the problems Coinbase faced several years ago with the IRS.
The Binance Empire Just Keeps Growing!
In a short span of time, Binance has become something of a phenomenon, outperforming Deutsche Bank in Q1 2018 and exploding into the cryptocurrency sector by providing a wide variety of altcoins and markets for its users.
Since opening for business in 2017 and originally being based in China, Binance has relocated to crypto-friendly Malta, runs its own tradable cryptocurrency (BNB), and is launching a GBP/EUR-to-crypto exchange, Binance Jersey.
“Binance is excited to announce that Binance’s EUR/GBP Fiat Exchange, Binance.je, is now online, with trading in BTC/GBP, ETH/GBP, BTC/EUR and ETH/EUR trading pairs now open. Registrations, deposits and withdrawals are now also available.” – Binance Jersey Announcement
Founder and CEO CZ is also hailed as a celebrity in the cryptocurrency space, with future plans to turn Binance into a decentralized blockchain-powered exchange!
“Binance Chain will mainly focus on the transfer and trading of blockchain assets, as well as provide new possibilities for the future flow of blockchain assets. Binance Chain will focus on performance, ease-of-use, and liquidity. Binance Coin (BNB) will be upgraded to exist on its own blockchain mainnet, becoming a native coin. At the same time, Binance will transition from being a company to a community.” – Binance Chain Announcement
This is not investment advice; please always do thorough research and only invest what you are willing to lose, especially in times of uncertainty.